Price Reductions A Symptom Of Overly Optimistic Sellers

A report from the Star Tribune in Minnesota. “With entry-level house listings still hovering near all-time lows, prices across the Twin Cities metro broke another record last month. But relief is on the way: More houses are hitting the market, competition is softening ever so slightly and price gains are moderating.”

“During August there were 7,814 new house listings across the metro, a 7.6-percent increase over last year and the biggest gain in at least three years, according to a monthly sales report from the Minneapolis Area Association of Realtors. At the same time, there were just 5,663 pending sales, a 2.9-percent decline from last year.”

“Sellers of the most affordable listings are still getting close to, or more than, their asking price, while those selling the most expensive listings are offering the biggest discounts. Hammerseng said that the price reductions being offered this fall could simply be a symptom of overly optimistic sellers who priced their houses too high this spring.”

“Sellers of the most affordable listings are still getting close to, or more than, their asking price……”

An old UHS trick – drop the listing price in the AM then at lunchtime it goes pending. This way the Expert and Analyst can say “My listings get 99 percent of their asking price”! Yeah, after adjustment, not the original price.

Part of the whole, “They didn’t really think they needed money, they didn’t know how sick they were, but we as concerned guardians, had to force feed them from the public treasury. Because while we couldn’t see the greatest financial event since the Great Depression, we had greater knowledge and insight into their operations than they did.”